. >>> shares of d.r. hortoneat estimates, reporting a 44% jump in profit because of rising home orders? joining us now is bob wettenhal from rbc capital markets. welcome to the program. >> good morning. >> this is the biggest of the home builders, arguably the one that's most exposed to first time buyers. actually a stock that's done quite well. what is the recommendation on what you've seen today? >> this is just another example of the whole team at d.r. horton delivers consistently excellent high level of execution. we love the beat. we love the strategy of targeting the first time home buyer. management has done a phenomenal job of capturing the first-time home buyer and they have a terrific geographic footprint in california, texas, arizona, nevada. there's been a lot of concern about the impact of lower oil prices on demand. i'm in houston today, we don't see it. >> they are close to your $32 price target. >> yeah. and this is the kind of print you see that gives you confidence that these guys can continue

the homebuilders are helping matters after d.r. horton, the largest u.s. homebuilder came out with earnings that beat estimates. earnings up 44% and sales up as well. that is helping to pull up the other homebuilders as well. speaking of real estate, remember darden restaurants said it was spinning off some of its holdings into a real estate investment trust. up 6% even as darden itself falls. side, we havee materials stocks at a couple of different things waiting on them. inflation data renewing concerns about growth there weighing on minors like freeport-mcmoran, copper, and gold. usda today,m the noting a thing of -- noting a continuing club of things like corn and soybeans. finally, owings illinois, the maker of class, a neutral rating at the quarry. researchher piece of is weighing on the biggest stock today -- apple is down after credit squeeze said because of asia's channel checks, there are concerns about demand for the iphone 6. did keep andthey outperform rating. talk to thell analyst who wrote that report on apple, so we will get that. let's get

you can see kb home's and others, all of them are increasing after that report from d.r. horton.we used to deal with homebuilders. this is up by about 1.2%. effect from ripple it. but we should mention there is under performance this year. if you take a look at my bloomberg terminal, this is versus the s&p 500. most of the drop has been more recently. it has not recovered along with the s&p 500. the is an effect that higher rates have. we can also take a look at the valuation. the valuation for this group, we have seen the valuations go higher even as earning estimates are lower, so the upper graph is the earnings per share, the writs, pe, and in other the estimated earnings per share. there, i have it. it is trading around 10 right now, which is around the historical range of seven to 10, and the estimates for 2016 have been coming down. david: thank you, julie hyman at the markets desk. , we will have brian moynihan being interviewed by my colleague at the summit. that is coming up after the break on bloomberg markets. ♪ ♪ david: welcome back to "bloomberg markets." i am david

. >> shares of d.r. horton which i always want to call dr. horton, but it's d.r. horton, soaring on the earnings. the bullish sign. the results are signalling about a key part of the american housing department. we'll talk about. that speaking of, which the numbers out on the most expensive housing market. yes, san francisco is on the list. but you won't believe which other cities are, too. bob dylan. to improve my language skills, i've read all of your lyrics. you've read all of my lyrics? i can read 800 million pages per second. that's fast. my analysis shows your major themes are that time passes. and love fades. that sounds about right. i have never known love. maybe we should write a song together. i can sing. you can sing? do be bop. be bop do. do be do be do. do do do be do. >>> hi, everybody. here is your cnbc news update for this hour. president obama asking the supreme court to save his plan to keep illegal immigrants from deportation. republicans consider criticized the plan as illegal exclusive overreach. democratic presidential hopeful bernie sanders r

d.r. horton reported a fantastic 84 a quarter and it's fabulous, right? however the first thing i thought wasn't, wow, what a terrific quarter. no. i said, oh, man, i hope the fed doesn't say housing's doing too well so we have to raise rates immediately. no doubt, horton's strength at this point will be used against it. i feel the same way every time i see excellent auto numbers. the fed is worried about any strength. it doesn't recognize that the strength is only in pockets and can be taken away at a moment's notice. but if i'm so concerned, if i'm so worried, what is there to be optimistic about? what can go right during a series of rate hikes to would make it worthwhile to own any stocks? first, we could get some help from overseas. we really need it. if your portfolio starts growing with some alacrity, european banks wouldn't be so eager to debase the euro at our expense. if somehow latin america were to stabilize with brazil getting something right, anything right, impossible as that sounds, it would be terrific for us. we wouldn't have to worry so

d.r. horton is the largest u.s.omebuilder and the company is out with fiscal earnings that rose by 44%. the strategy has been to try to appeal to all segments of the housing market from entry level to luxury and it looks like that strategy is paying off as the shares right by -- rise by 2.5%. lions gate entertainment actually reported a disappointing quarter because not enough people went to see "the last witch hunter." however, the shares turned there wereply after stakes being taken and the company come about 5 million shares which is 3.4%. the liberty ceo and the discovery ceo will be joining the board of lions gate. it looks like there are some options with that and lions gate is still suffering from the absence of hope what the hunger games." did you see "the last witch hunter?" betty: that was off my radar. julie: they made another movie called "american ultra." betty: we just proved it. still ahead, we are going to beijing for the chinese version of cyber monday. holiday rate in $9 billion in 24 hours last ye

d.r. horton had fiscal fourth-quarter earnings that grew 33%.far as growth is concerned. home prices across the country set -- rose .5% in 13.5%. and then the gap is a losing story. talked about same-store sales in the gap is down 4% in the last quarter. 12% andepublic is down the gap is down 6.5% in the premarket right now. we will take a quick break and when we come back, the interview with the sec chair, mary jo white. ♪ stephanie: welcome back. erik schatzker is down and d.c. for the sixma annual meeting. less than hour ago, we sat down with the incoming ceo of credit sweeties. one thing that sticks out to me is he so centered and the same background as james gorman, both former mckinsey consultants. we have seen criticisms of bank ceos they come from organizations who have love for their legacy businesses. it's hard for them to distance themselves from those units and see the big picture. james gorman has had huge success at goldman sachs. david: if i am worried about risk and volatility, that's the sort of person i would like to be supervi